Risk Assessment and Return Analysis - Essay Example

Free

Extract of sample
Risk Assessment and Return Analysis

This paper will provide a comprehensive risk assessment and return analysis of the investment portfolio encompassing investments in Dell, Home Depot, Procter & Gamble, General Electric, IBM bond and Disney. Dell Although the company continues to perform relatively well, Dell is currently competing in a different market in which the company does not have a substantial advantage. Dell thrived in the past because of its product offering as the company concentrated on the sale of desktops that were built on order. Dell sustained low parts inventories to reduce overhead. Furthermore, Dell’s direct sales program gives the company a low cost edge. While this ensures that the company’s profitability remains high, the company does not have cost efficiency. The company will, however, continue to operate profitably thereby deterring risks such as liquidity risks. This means that the return on investments will remain relatively high as long as the desktop sector does not suffer economically. Disney Investing in blue chip companies such as Disney is always advantageous. However, investing in Disney offers relatively low yields on investment but low risks. This is because investing in defensive stocks, in Disney, ensures the investor low volatility with regard to the industry and low prices thereby providing easy buy-out options. ...Show more

Summary

Risk Assessment and Return Analysis Name: Institution: Risk Assessment and Return Analysis In investment, risk assessment and return analysis are vital elements are central to the payout structures of investment vehicles. The general utility theory asserts that the average investor dislikes risks and prefers investment vehicles with the least possible risk…
Author : cdouglas
Risk Assessment and Return Analysis essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Risk Assessment and Return Analysis"
with a personal 20% discount.
Grab the best paper

Related Essays

Risk and return of entrepreneurial investments
Private equity firms invest equity funds in order to receive and increase returns. In the recent years, we have witnessed extraordinary entrepreneurial investments have been done in the private equity funds.
8 pages (2000 words) Essay
Risk and return
One of the problems with higher risk is that it can lead to financial catastrophes. For example imagine a person that invests in a penny stock. Penny stocks are considered the most risky of all types of investments.
4 pages (1000 words) Essay
Ethics and Risk Assessment
The purpose of this form is to confirm that supervisor and student have agreed on an appropriate title for the student’s project and addressed any ethical considerations or fieldwork practicalities raised by the research. When approved by the relevant signatories listed at the end of this statement (p.
15 pages (3750 words) Essay
Risk Assessment and Return Memo
In order to create portfolio, my most important priority has been to select four stocks after analyzing the risks and return of each of the stock. This would allow me to diversify the portfolio and make sure that the portfolio the risk is minimized and returns are maximized.
5 pages (1250 words) Essay
Risk Assessment of Strident Marks
Market Total Return and Market Excess Return follow this. Every stock in the market has a certain return. This return is assumed to have a normal distribution. This means that the return can be described by two terms. The first term is the mean (expected return) and the second is the variance of returns.
2 pages (500 words) Essay
Country Risk Analysis Essay
Country risk analysis tries to identify the possibility for these risks which may decrease the expected return (Sergey Krivovichev, Peter Burns, Ivan Tananaev, 2007). Risk aids an analyst to identify an event drawn from large samples of observations. These samples of observations help analysts to develop a statistical function which is open to probability analysis.
10 pages (2500 words) Essay
Country Risk Analysis
Country risk analysis (CRA) is used to find out how these potential risks may influence the return of internationally placed investments. This paper attempts at establishing the main categories of country risks as well as difficulties encountered in country risk analysis.
4 pages (1000 words) Essay
Risk-Return Concepts
It is irrefutable that most investors already have this preset conception of what type of investment is likely to give him more profits and gains in the future. There is a widely held belief that an investment in the stock market is a no-win situation and only institutional investors reap profits.
2 pages (500 words) Essay
Strategic financial management risk assessment decisions

The paper highlights certain troubles caused by the variation in perceptions of risk by different corporate houses. The importance of risk assessment is evaluated through a qualitative research, by putting forward some risk theories. Quantitative approach is also undertaken as the risks are quantified.

6 pages (1500 words) Essay
Risk and Return Relationship
The risk is defined as the probability of losing anything of value or uncertainty of a result. It is also described as the intended interaction with improbability or uncertainty. Values, for example, financial wealth, social status or physical health can be lost or gained when threat/risk taking place from a known activity or action.
3 pages (750 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT